LEGOLAND theme parks sell for $460 million
By Erika Finch-McCaffrey
LEGOLAND Parks, with locations in Carlsbad, Denmark, England and Germany, was purchased last month by the newly-formed Merlin Entertainments Group. The majority of the new company (70 percent) is owned by Blackstone Capitol Partners IV, one of the largest institutional private equity investment groups in the world. LEGO Group, a privately-held family company, owns 30 percent of Merlin Entertainments Group.
All four parks and Hotel LEGOLAND in Billund, Denmark, were sold for $460 million or 375 million euro.
In a press statement, LEGOLAND President and General Manager John Jakobsen said the change in ownership will benefit the park.
"This new ownership structure builds on our brand strength and provides the opportunity to continually grow as an attraction and as a destination for families with children. The Merlin Entertainments Group is one of the top attractions groups in Europe and this new partnership provides a strong platform to explore growth in the United States."
Merlin operates 28 attractions across Europe, including Sea Life, Dungeon and Earth Explorer. They are the second largest visitor attraction business in Europe. Sea Life centers are aquarium-based attractions while Earth Explorer takes a hands-on approach to earth sciences. Like LEGOLAND, both attractions are geared toward children ages 2 to 12. Dungeon, with its live actors, teaches visitors about Medieval Europe and is more popular among older children.
LEGOLAND California officials said park visitors and employees will not notice a difference in the park under the new ownership.
"There really won't be any changes in the park as far as the guest experience is concerned," said Kim Clark, park spokeswoman. "In the long run, we expect growth and more of a destination feel for families with children. We expect to add a hotel and more attractions."
The park, which has a maximum of 1,000 employees during peak period, has been looking for a buyer since October 2004. Last year, it attracted 1.42 million visitors, though it lost $314 million in revenue. Clark said they are tracking the same number of visitors for 2005.
The three European LEGOLAND parks attracted 5.6 million visitors in 2004. The 128-acre LEGOLAND California opened in 1999 while the original theme park, at the company's headquarters in Denmark, opened in 1967.
Clark said the company decided to pursue a buyer for its theme parks in order to focus on their toys.
"The LEGO Group wants to focus on its play material and the toy business," Clark said. "The toy business and theme park business are very different and the company decided to focus its energy on play materials."
As for park expansion, Clark said Merlin Entertainments Group has not set a timeline. LEGOLAND California is currently the company's only endeavor in the United States.
By Erika Finch-McCaffrey
LEGOLAND Parks, with locations in Carlsbad, Denmark, England and Germany, was purchased last month by the newly-formed Merlin Entertainments Group. The majority of the new company (70 percent) is owned by Blackstone Capitol Partners IV, one of the largest institutional private equity investment groups in the world. LEGO Group, a privately-held family company, owns 30 percent of Merlin Entertainments Group.
All four parks and Hotel LEGOLAND in Billund, Denmark, were sold for $460 million or 375 million euro.
In a press statement, LEGOLAND President and General Manager John Jakobsen said the change in ownership will benefit the park.
"This new ownership structure builds on our brand strength and provides the opportunity to continually grow as an attraction and as a destination for families with children. The Merlin Entertainments Group is one of the top attractions groups in Europe and this new partnership provides a strong platform to explore growth in the United States."
Merlin operates 28 attractions across Europe, including Sea Life, Dungeon and Earth Explorer. They are the second largest visitor attraction business in Europe. Sea Life centers are aquarium-based attractions while Earth Explorer takes a hands-on approach to earth sciences. Like LEGOLAND, both attractions are geared toward children ages 2 to 12. Dungeon, with its live actors, teaches visitors about Medieval Europe and is more popular among older children.
LEGOLAND California officials said park visitors and employees will not notice a difference in the park under the new ownership.
"There really won't be any changes in the park as far as the guest experience is concerned," said Kim Clark, park spokeswoman. "In the long run, we expect growth and more of a destination feel for families with children. We expect to add a hotel and more attractions."
The park, which has a maximum of 1,000 employees during peak period, has been looking for a buyer since October 2004. Last year, it attracted 1.42 million visitors, though it lost $314 million in revenue. Clark said they are tracking the same number of visitors for 2005.
The three European LEGOLAND parks attracted 5.6 million visitors in 2004. The 128-acre LEGOLAND California opened in 1999 while the original theme park, at the company's headquarters in Denmark, opened in 1967.
Clark said the company decided to pursue a buyer for its theme parks in order to focus on their toys.
"The LEGO Group wants to focus on its play material and the toy business," Clark said. "The toy business and theme park business are very different and the company decided to focus its energy on play materials."
As for park expansion, Clark said Merlin Entertainments Group has not set a timeline. LEGOLAND California is currently the company's only endeavor in the United States.